IN RE: DHANRAJ C. BHATIA Vs. STATE

JUDGEMENT

(1.) THE Official Liquidator has submitted his report for direction whether he should take out a Judge's Summons against M/s. Janata Industries for setting aside execution of the eviction decree passed by the Court of Small Causes at Bombay.

(2.) THE company had five galas viz. galas Nos. 16 to 20 in premises at 162, Tulsi Pipe Road, Lower Parel, Bombay. The Official Liquidator took possession of 4 galas, viz. gala Nos. 16 to 19. He could not take possession of Gala No. 20 as the occupant of that gala raised dispute.

(3.) IN or about July, 1979, there was a fire in the vicinity of the said galas and gala Nos. 16 and 17 were damaged in that fire. The suit, however, was defended by the Official Liquidator by engaging an advocate. The suit was decreed on 14 -7 -1982 and the company in liquidation was directed to deliver vacant and peaceful possession of the suit premises to the landlords viz M/s. Janata Industries on or before 16th August, 1982. The question of preferring an appeal against the said decree arose and the Official Liquidator was advised that if any appeal was to be preferred, he will have to deposit the arrears of rent for the period from September, 1977 to June, 1982 amounting to Rs. 87,000. This the Official Liquidator found it impossible to do as the company had no funds whatsoever to its credit. The Official Liquidator, therefore, sought directions of the Court by his report dated 10th August, 1982 whether he should hand over possession of the said galas Nos. 16 to 19 to landlord. On that report, the Official Liquidator was directed to give notice to the petitioning Creditor. In his resubmitted report dated 1st September, 1982, the Official Liquidator has stated that he was informed that possession of the said gala Nos. 16 to 19 was taken by the landlords in execution of the decree through Bailiff, on I7th and 18th August, 1982. On the resubmitted report, the question that arose for consideration was whether the landlord could execute the decree without the leave of the Court as required by section 537 of Companies Act, 1956. The said report was adjourned on the application of Shri K. Dalptrai, the learned advocate appearing on behalf of the petitioning creditor for two weeks. In the meantime, the Court gave directions to the Official Liquidator to negotiate with the landlords and accordingly, the Official Liquidator negotiated with the landlords and in the meeting held before the Official Liquidator on 16th September, 1982 the landlords offered to give up the arrears of rent of Rs. 87,000/ - upto June 1982 and Rs. 4500/ - upto the end of September, 1982. The landlords also offered to pay to the Official Liquidator Rs. 30,000.